INTERIM FINANCIAL REPORT FOR THE YEAR 1988

Transcription

1 6г> WORLD HEALTH ORGANIZATION M2/12 ^ ^ ^ ^ ORGANISATION MONDIALE DE LA SANTÉ 20 Mar ch 1989 FORTY"SECOND WORLD HEALTH ASSEMBLY Provisional agenda item 22 1 INTERIM FINANCIAL REPORT FOR THE YEAR 1988

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3 C O N T E N T S INTERIM FINANCIAL REPORT FOR THE YEAR 1988 Introduction 5 Table 1: Statement of regular budget appropriations, obligations and balances for the financial period as at 31 December Table 2: Consolidated statement of income and expenditure under all funds for the year Table 3: Statement of assets and liabilities as at 31 December Explanatory notes 12 Table 4 : Assessed contributions and prior years 16 Table 5: Working Capital Fund 19 Table 6: Casual Income Account 20 Table 7: Special Account for Servicing Costs 22 Table 8: Real Estate Fund 23 Table 9: Special Account for Headquarters Extension and Repayment of the Swiss Loan 24 APPENDIX: EXTRABUDGETARY RESOURCES FOR PROGRAMME 25 List of programme symbols 26 All extrabudgetary funds 一 1988 income and expenditure 2J- Extrabudgetary contributions for WHO-assisted activities as at 31 December Voluntary Fund for Health Promotion Contributions by year, from inception 41 Contributions by special account 42 Summary of 1988 income and expenditure by special account 43 Statement of 1988 income and expenditure by special account : -Medical Research - Unspecified activities 44 一 Specified activities : Human reproduction 45 Other 46 -Community Water Supply 51 -Malaria 53 -Smallpox Eradication 55 -Leprosy Programme 56 -Yaws Programme 57 -Diarrhoeal Diseases including Cholera 58 -Disasters and Natural Catastrophes 60 -Expanded Programme on Immunization 62 一 Assistance to the Least Developed among Developing Countries 66 -Miscellaneous Designated Contributions : -Prevention of Blindness 67 一 Special Assistance to Democratic Kampuchea, the Lao People's Democratic Republic and Viet Nam 69 -Other 70 -Training courses - DANIDA 101 -Mental Health Programme 103 -Undesignated Contributions 107

4 Global Programme on AIDS Statement of 1988 income and expenditure 108 Summary of 1988 expenditure 123 Onchocerciasis Control Programme ~Status of funds 124 Summary of 1988 expenditure 125 Primary Health Care Initiative Fund Status of funds, including summary of 1988 expenditure 126 Sasakawa Health Trust Fund Status of funds ii ""Г 127 Summary of 1988 expenditure 128 Special Programme for Research and Training in Tropical Diseases Status of funds 131 Summary of 1988 expenditure 133 United Nations Development Programme Status of funds 134 Summary of 1988 expenditure 136 United Nations Population Fund ~Status of funds 139 Summary of 1988 expenditure 141

5 INTRODUCTION 1. The Interim Financial Report of the Organization for the year 1988 is submitted by the Director-General in accordance with Article 34 of the Constitution. The report has been prepared in accordance with Financial Regulation 11.3, which provides for an interim financial report to be established at the end of the first year of the two-year financial period, and for a final financial report covering the full biennium to be prepared at the end of the second year of the financial period. Presentation of the Financial Report 2 The content of this Interim Financial Report is similar to that of the interim report for the year The report includes, in addition to the descriptive text and explanatory notes, tabular material reflecting the key financial aspects of the Organization (pages 8 to 24) at the end of the first year of the biennium, i.e., at 31 December The tabular material is followed by an Appendix pertaining to extrabudgetary resources which were available to the Organization for programme implementation. This Appendix contains a summary, by fund, of all 1988 income and expenditure under extrabudgetary sources (page 27); a statement of extrabudgetary contributions by donor (pages 28 to 40); cumulative statements of contributions to the Voluntary Fund for Health Promotion by year from inception (page 41) and of contributions by special account (page 42); and a summary and details of contributions made to each special account in the Voluntary Fund for Health Promotion together with related project expenditure (pages 43 to 107) Summaries of income and expenditure for the Trust Fund for the Global Programme on AIDS, the Onchocerciasis Control Programme, the Primary Health Care Initiative Fund, the Sasakawa Health Trust Fund, the Trust Fund for the Special Programme for Research and Training in Tropical Diseases, UNDP and UNFPA are shown on pages 108 to 143; in the case of UNDP and UNFPA the expenditure is broken down by country, regional and global projects. The presentation of this detailed Appendix on extrabudgetary resources continues to meet the need of a number of donors for annual financial reports on contributions to and expenditures from such resources Collection of assessed contributions 4. The rate of collection of annual assessed contributions at the end of 1988 was 83.88% of the assessed amounts; this compares with collection rates of 72.18% and 78.47% on 31 December 1986 and 31 December 1987 respectively. As at 31 December 1988, 91 Members had paid their current year contribution in full, Members had paid in part, and 44 Members had made no payments whatsoever towards their 1988 contribution. 5. The rate of collection of assessed contributions for the year 1988 shows an improvement over the years 1986 and 1987 but is inferior to the rates in excess of 90% recorded from 1982 to 1985 This unfortunate situation is due to a large extent to the fact that one Member had paid at 31 December 1988 only $ in respect of its 1988 assessment of $ , being thus in arrears by an amount of $ , or 37.15% of its assessment for In view of the anticipated financial difficulties arising from this unusually large shortfall in the receipt of assessed contributions and the risk that the Organization will be unable to meet its financial obligations, the Director-General, in the interest of prudent financial management, took steps provisionally to reduce by $ 25 million the implementation of activities included in the approved programme budget for the current financial period It will be recalled that a similar course of action was taken during the biennium , when programme implementation reductions of $ 35 million were made to meet a similar shortfall in the collection of assessed contributions. 6. At its eighty-third session, in January 1989, the Executive Board considered the report of the Director-General on the status of collection of assessed contributions and of advances to the Working Capital Fund. In resolution EB83.R5, the Board expressed its deep concern at the alarming deterioration in recent years in the payment of contributions by Member States and the impact of such delays on the programme of work approved by the Health Assembly. The Board urged Members that were in arrears to pay their outstanding contributions before the Forty-second World Health Assembly, to be convened on 8 May 1989, and requested the Director- General to inform all Member States of the situation as soon as possible, and to request

6 early payment in view of the exceptional circumstances. In the same resolution the Board recommended to the Forty-second World Health Assembly the adoption of a resolution calling the attention of all Members to the importance of paying their full contributions as early as possible to enable the Director-General to implement the programme budget in an orderly manner, thus preventing the recourse to programme implementation reductions affecting the work of the Organization. 7. For the same reasons the Forty-first World Health Assembly, in May 1988, decided (resolution WHA41.12) to introduce an incentive scheme to promote the timely payment of assessed contributions effective as from the programme budget for , to be approved in 1991, based upon the record of Members 1 payments of assessed contributions in the years 1989 and 1990 and the record of the interest component of the casual income earned in those two years Such interest earnings will be apportioned among Members in the forra of credits against their gross assessments for , taking into account the scale of assessments and the dates and amounts of the payments of assessed contributions made by Members. Operation of the exchange rate facility: Use of casual income to reduce adverse effects of currency fluctuations on the programme budget for The Fortieth World Health Assembly (1987), in resolution WHA40.4, authorized the Director-General, for the financial period , to charge against available casual income the net additional costs to the Organization under the regular programme budget resulting from differences between the WHO budgetary rates of exchange and the United Nations/WHO accounting rates of exchange with respect to the relationship between the US dollar and the CFA franc, the Danish krone, the Egyptian pound, the Indian rupee, the Philippine peso and the Swiss franc prevailing during this financial period, provided that such charges against casual income do not exceed $ 31 ООО 000 in At the same time, the Director- General was requested to transfer to casual income any net savings resulting from differences between the WHO budgetary rates of exchange and the accounting rates of exchange prevailing during the financial period between the US dollar and the Swiss franc and the above-mentioned major regional office currencies. 9 During the year 1988 the accounting rates of exchange between the US dollar and the Swiss franc, the CFA franc and the Danish krone were substantially lower than the WHO budgetary rates of exchange set at, respectively, 1.65 Swiss francs, 350 CFA francs and 8.20 Danish krone per US dollar (the lowest accounting rates of exchange in 1988 having been 1. Swiss francs, 270 CFA francs and 6-16 Danish krone per US dollar) Accordingly, an amount of $ of available casual income was obligated during 1988, pursuant to resolution WHA40.4, to reduce adverse effects of currency fluctuations on the programme budget for With regard to the Indian rupee, Egyptian pound and Philippine peso, $ in savings resulting from favourable accounting rates of exchange as compared to budgetary rates of exchange materialized during These savings, which have been credited to casual income, are being used, together with any additional savings which accrue in this respect in 1989, to offset part of the losses incurred as a result of the unfavourable accounting rates of exchange of the Swiss franc, the CFA franc and the Danish krone. 11. Following the closure of the biennial accounts, the operation of the exchange rate facility during the full biennium will be reported in the final Financial Report covering that financial period. Casual income available 12. When the Executive Board at its eighty-third session (January 1989) reviewed available casual income as part of its examination of the proposed programme budget for , the amount available at 31 December 1988 had been provisionally estimated at $ The actual amount available, upon closure of accounts as at 31 December 1988, is $ This amount of casual income consists principally of four main components: (a) the balance brought forward from 31 December $ 22.1 million - plus exchange rate savings of $ 3.8 million (see paragraph 10 above) less $ 25.5 million obligated under the exchange

7 rate facility authorized by resolution WHA40.4 (see paragraph 9 above), $ 13-9 million appropriated by the Forty-first World Health Assembly in May 1988 to help finance the regular programme budget, and $ for the 1988 and 1989 contributions for Namibia; (b) the collection during 1988 of arrears of contributions, totalling $ 39.3 million; (c) interest earned during 1988 on bank deposits, amounting to $ 12.0 million; and (d) other casual income items, including savings oil the liquidation of prior years' obligations and miscellaneous items, totalling $ 5.5 million. Obligations incurred - regular budget 14 With biennial budgeting, funds are allotted to regional offices and to programme managers for the two-year period. Against those allotments obligations have been incurred, whepe appropriate, for the full 24 months (e.g., salaries); in other cases (e.g., consultants and short-term personnel services, travel, fellowships, contractual services, meetings, purchase of supplies and equipment, and printing work), obligations have been incurred only to the extent that commitments were known and established at 31 December Accordingly, the consolidated situation as at 31 December 1988 does not represent a meaningful financial reflection of the rate of programme implementation, and for this reason detailed information is presented in this report only at the appropriation section level (see Table 1 oil page 8) At the end of the biennial period, data by programme, region, etc., covering the two-year period, together with detailed information on project costs by source of funds for country, intercountry, regional, global and interregional activities, will be presented in the Financial Report for the biennium to be issued early in In addition, in accordance with resolution WHA40.4 relating to the exchange rate facility and as already referred to in paragraph 9 above, obligations of $ 25.5 million have been incurred under the casual income account in order to reduce the adverse effects of currency fluctuations at headquarters and the regional offices in respect of regular budget expenditure in Swiss francs, CFA francs and Danish krone. Extrabudgetary sources of funds 16 The level of obligations incurred during the year 1988 under the extrabudgetary sources available towards financing WHO 1 s integrated international health programme compares with that of previous years as follows: (US$ 000) (US$ 000) (US$ 000: Voluntary Fund for Health Promotion Special Programme for Research and Training i Ln Tropical Diseases Onchocerciasis Control Programme UNDP UNFPA Other United Nations sources Other funds Total The Interim Financial Report is not accompanied by an audit certificate. However, the accounts are subject to continuous review by both internal and external auditors and, pursuant to the Financial Regulations, the External Auditor is at liberty to send a report to the Health Assembly should he feel the need to do so.

8 STATEMENT OF REGULAR BUDGET APPROPRIATIONS, OBLIGATIONS AND BALANCES FOR THE FINANCIAL PERIOD AS AT 31 DECEMBER 1988 (expressed in US dollars) Appropriation section Amounts voted by the World Health Assembly (resolution WHA41.10) Liquidated Obligations Unliquidated Total Balance available to meet the costs of obligations to be incurred in (1) (2) (3) (5) (6) 1. Direction, coordination and Health system infrastructure Health science and technology: health promotion and care Health science and technology: disease prevention and control EFFECTIVE WORKING BUDGET Transfer to Tax Equalization Fund ООО 7. Undistributed reserve In accordance with established practice under the biennial programme budgeting and accounting procedures,regular budget obligations have been raised, where applicable, for the full biennium. Obligations incurred at 31 December 1988 but not yet paid at that date in respect of salaries and allowances, fellowships, travel costs, procurement of supplies and equipment, printing, etc., including unliquidated obligations relating to staff salaries and allowances for the year 1989 amounting to some $ Balance available to meet the costs of new obligations to be incurred in 1989 in respect of personal services, travel, fellowships, contractual services, meetings, purchase of supplies and equipment and printing work which will be obligated as and when the actual contracts, travel authorizations and purchase or printing orders are issued. As at 31 December 1988, of the above balance, an amount of $ 25 million is subject to the provisional and contingent economy measures established by the Director-General to face an expected shortfall in assessed contributions for and avoid a situation in which the Organization would be unable to meet its financial obligations. Including a contribution of $ from the regular budget to the Trust Fund for the Special Programme for Research and Training in Tropical Diseases, of which $ had been transferred as at 31 December 1988, and $ to the Onchocerciasis Control Programme.

9 CONSOLIDATED STATEMENT OF INCOME AND EXPENDITURE UNDER ALL FUNDS 一 FOR THE YEAR 1988 (expressed in US dollars) Balance 1 January 1988 Income International health programme Expenditure Other purposes Balance 31 December ORGANIZATION'S FUNDS 1.1 Regular budget Effective working budget 1.2 Other Organization's funds Tax Equalization Fund Working Capital Fund Holding Account Casual Income Account Executive Board Special Fund Special Account for Servicing Costs Special Account for Operation of Concessions at Headquarters.. Real Estate Fund Special Account for Headquarters Extension and Repayment of the Swiss Loan Revolving Sales Fund Revolving Fund for Teaching and Laboratory Equipment for Medical Education and Training Terminal Payments Account ООО 今 d Subtotal Organization*s funds i > ( ) VOLUNTARY FUND FOR HEALTH PROMOTION (0-b ~ ! 3. TRUST FUNDS 3.1 Technical cooperation funds Global Programme on AIDS Onchocerciasis Control Programme.. Primary Health Care Initiative Fund Sasakawa Health Trust Fund Trust Fund for the Special Programme for Research and Training in Tropical Diseases United Nations Afghanistan Emergency Trust Fund United Nations Children's Fund... United Nations Development Programme United Nations Environment Programme United Nations Fund for Drug Abuse Control. United Nations Population Fund... United Nations High Commissioner for Refugees United Nations sundry trust and voluntary funds Standard letter of agreement between executing agencies World Bank Cooperative Programmes. Associate professional officers.. Other funds ( ) ( ) ( ) ( ) ( ) , 321 ^ b,g J ^ ( A 241 (288 ( u 025) 互 124 语 241) 五 954 ОЗД

10 Expenditure Balance Balance 1 January Income International 31 December 0 t h e r 1988 health 1988 r purposes r programme Supply services funds United Nations Development Programme United Nations Disaster Relief Coordinator, Office United Nations Educational, Scientific and Cultural Organization United Nations High Commissioner for Refugees General Revolving Fund for Teaching and Laboratory Equipment for Medical Education and Training Other trust funds Members * contributions received in advance Léon Bernard Foundation Darling Foundation Dr A.T. Shousha Foundation Jacques Parisot Foundation Child Health Foundation Dr Comían A.A. Quenum Prize.. International Agency for Research on Cancer International Computing Centre.. Due to estates of deceased staff members Special fund for compensation. Staff health insurance fund.... Other funds Subtotal - Trust funds (15 000) ( ) i (311) (933) 一 (7 757) - 5 ООО 一 一 一 ALL FUNDS Excluding РАНО. Including $ transferred from the regular budget to the Trust Fund for the Special Programme for Research and Training in Tropical Diseases and $ to the Onchocerciasis Control Programme. Exchange rate savings transferred to Casual Income Account. Disbursements only (unliquidated obligations excluded). The funds deposited in national currencies with WHO for purchase of teaching and laboratory equipment and the cost of such procurement are reflected under supply services funds (see part 3.2 below). f Consisting of cash ($ ) and vaccines and other supplies in stock ($ ). i Including $ 100 ООО transferred from the Sasakawa Health Trust Fund to the Trust Fund for the Special Programme for Research and Training in Tropical Diseases. Negative balance resulting from higher expenditure (including unliquidated obligations as reflected in Table 3, page 11) than advances received by the Organization at 31 December Cash income and disbursements only, reflecting WHO 1 s trustee function. Detailed financial report issued by IARC.

11 STATEMENT OF ASSETS AND LIABILITIES AS AT 31 DECEMBER (expressed in US dollars) LIABILITIES Cash* Accounts payable* At banks,,in transit and on hand Unliquidated obligations* Letters of credit* Regular budget - Current financial period -Prior financial periods Deposits at id securities* Accounts receivable* Outstanding contributions (Table 4) Active Members Less; Reserve for outstanding contributions Onchocerciasis Fund... Sasakawa Health Trust Fund Trust Fund for the Special Programme Research and United Nations United Nations United Nations United Nations United Nations for Training in Tropical Diseases.. Development Programme Environment Programme Fund for Drug Abuse Control... Fund for Population Activities. sundry trust and voluntary funds Sundry debtors* Working Capital Fund (Table 5) Prepaid expenses* Regular Budget (Tables 1 and 2) Voluntary contributions Supplies In stock Capital assets (Real In kind* property)* Headquarters land and buildings African Regional Office land and building African Region: Office building and staff housing in Malabo, Equatorial Guinea Onchocerciasis Control Programme,headquarters land and building South-East Asia Regional Office building Eastern Mediterranean Region, staff housing Western Pacific Regional Office building A Special funds Tax Equalization Fund (Table 2)* Holding Account Casual Income Account (Table 6) Executive Board Special Fund (Table 2)*.... Voluntary Fund for Health Promotion (Table 2 and Appendix) Special Account for Servicing Costs (Table 7). Special Account for Operation of Concessions at Headquarters (Table 2)* Real Estate Fund (Table 8) Special Account for Headquarters Extension and Repayment of the Swiss Loan (Table 9).... Revolving Sales Fund (Table 2)* Revolving Fund for Teaching and Laboratory Equipment for Medical Education and Training (Table 2)* Terminal Payments Account (Table 2)* Trust funds (Table 2 and Appendix) Loans repayable* Swiss Confederation ( ).. Republic and Canton of Geneva (1988) Swiss Bank Corporation Equity In capital assets* *See Explanatory Notes, following

12 TABLE 3 - EXPLANATORY NOTES The following notes are generally provided only in respect of those items in the Statement of Assets and Liabilities which are not supported by separate explanatory statements or schedules. Cash The aggregation of all the Organization's cash funds, including cash on hand, imprest and bank accounts, and funds in transit, reflects a balance of $ Imprest account balances have not been adjusted to reflect disbursements reported too late for inclusion in the expense accounts of the closing year. These disbursements will be accounted for in the following year against the relevant unliquidated obligations. Letters of credit The amount of $ represents the undrawn balance of two letters of credit received from the Government of the United States of America. These are related to the financing of the following activities By the US Agency for International Development Under the Voluntary Fund for Health Promotion: $ 一 Health systems research for the safe motherhood initiative $ 一 Malaria training programme $ Combating childhood communicable diseases project $ Country health resources utilization studies in sub-saharan African countries $ Field epidemiology/laboratory services programme in India $ Recurrent cost studies of health care in developing countries $ Support of Philippines Department of Health information systems development $ Vector biology and control programme Under the Trust Fund for the Global Programme on AIDS: $ AIDS prevention and control programme By the US Environmental Protection Agency Under the Voluntary Fund for Health Promotion: $ Human exposure assessment location (HEAL) project $ International Programme on Chemical Safety. Withdrawals will be made to meet requirements as implementation of the activities proceeds; the corresponding amount, at present included in accounts payable, will, as and when the cash is received, be reflected as income under the Voluntary Fund for Health Promotion and the Trust Fund for the Global Programme on AIDS, as applicable. Deposits and securities The deposits and securities are accounted at cost; they are held on behalf of the Organization and its special accounts and trust funds, including the Léon Bernard Foundation, the Darling Foundation, the Dr A.T. Shousha Foundation, the Jacques Parisot Foundation, the Child Health Foundation and the Dr Comían A.A. Quenum prize. As at 31 December 1988, the portfolio of the Organization comprised deposits and securities in the amount of $ , of which $ million were held in US dollars, $ 1.6 million in Netherlands guilders, and the balance of $ 1.0 million in other currencies.

13 Cash, deposits and securities by source of funds The total amount of $ held by the Organization as at 31 December 1988 relates to: US dollars Accounts payable Less : Accounts receivable and prepaid expenses ( ) Unliquidated obligations Voluntary Fund for Health Promotion ( ) Special Account for Servicing Costs Real Estate Fund Special Account for Headquarters Extension and Repayment of the Swiss Loan Accounts receivable Sundry debtors - $ , comprising payments due from other international organizations, advances made to staff members in accordance with the rules and regulations of the Organization, deposit accounts and sundry other debtors. This item includes certain expenses that will be charged against corresponding reserves for unliquidated obligations, or other appropriate accounts. The amount includes $ for interest accrued on deposits and securities held by banks. Prepaid expenses - $ , representing disbursements made in respect of obligations against the 1989 budget for extrabudgetary funds. Voluntary contributions in kind - $ , being the value of undrawn stocks of vaccines and other supplies donated to the Organization and credited to the Voluntary Fund for Health Promotion. Contributions in kind when received by the Organization are recorded in the accounts at the value stated by the donor, which may result in different valuations for similar items. Capital assets (Real property) The value of capital assets represents the cost at the time of acquisition or, in the case of donated properties, the value advised by the donor. No adjustments are made for depreciation, appreciation or fluctuation in currencies. Following the practice established in agreement with the External Auditor in 1975, the value of capital assets excludes the amounts resulting from fluctuations in exchange rates between the Swiss franc and the US dollar in respect of building loans. The amount of $ shown as the value of the headquarters land and buildings is comprised as follows: $ the cost of the main building completed in 1966 and capital improvement $ the cost of land acquired in 1971 for the permanent extension of the headquarters building (resolution WHA23.17) $ the cost of the prefabricated building erected in 1967 (resolution WHA20.23) $ the cost of the second prefabricated building, erected in 1971 (resolution WHA24.22) $ the cost of the underground parking garage constructed in 1971 (resolution WHA24.22) $ the cost of the third prefabricated building, erected in 1976 (resolution WHA28.26) $ the cost of an additional car park constructed in 1980 (resolution WHA33.15) $ the cost of the fourth prefabricated building completed in 1982 (resolution WHA34.10) $ 一 the cost of the building to house the kitchen and restaurant completed in 1985 (résolution WHA36.17) The value of the African Regional Office land and buildings - recorded as capital assets amounting to $ at 31 December represents the land and buildings of the Regional Office (Djouê Estate) donated by the Government of France (valued at $ ), the construction and alteration costs of the residential apartment houses erected in Brazzaville ($ ), the cost of the first extension to the Regional Office building ($ ) (resolution WHA23.16), the cost of the second extension to the Regional Office building ($ ) (resolution WHA28.26), the cost to 31 December 1988 of the third extension to the Regional Office building ($ ) (resolution WHA37.19), and capital improvements ($ ). The construction costs of a small office building and staff housing in Malabo, Equatorial Guinea, amounted to $ at 31 December 1988 (resolution WHA34.12).

14 Further, in accordance with paragraph 5 of resolution WHA22.8, an amount of $ was transferred to Miscellaneous Income, leaving a balance of $ in this account. The cost of the headquarters land and building of the Onchocerciasis Control Programme at Ouagadougou amounted to $ at 31 December The value of the South-East Asia Regional Office building recorded as capital assets amounting to $ at 31 December 1988 represents the construction costs of the building and extensions. The amount shown for Eastern Mediterranean Region staff housing ($ ) represents the costs of construction of accommodation for staff at Juba in southern Sudan. The Western Pacific Regional Office building is recorded at the cost of its construction and extensions ($ ). The capital assets (real property) of $ are offset in the balance sheet by the equity in capital assets of $ and the balance of the loans amounting to $ As these loans are repaid, the equity in capital assets will increase correspondingly. Accounts payable - $ , representing the firm liabilities of the Organization for goods supplied and services rendered for which suppliers' invoices, staff claims and claims from contractors and other organizations had been received before year-end and their actual cost reflected in the expenditure accounts but for which payment had not been made by 31 December The amount includes as counterpart entries $ for interest accrued but not yet received included in accounts receivable and $ in respect of the undrawn portion of letters of credit shown under Assets. Unliquidated obligations Regular budget The unliquidated obligations for the current financial period are not reflected in the balance sheet and in the consolidated statement of income and expenditure Nevertheless,as established under the biennial programme budgeting and accounting concept, regular budget obligations have been raised, where applicable, for the full biennium. As at 31 December 1988 unliquidated obligations amounted to $ , of which approximately $ related to personal services to be rendered in Whereas the income recorded under the regular budget during the calendar year 1988 for the biennium amounted to $ , the disbursements made during the same period were $ , thus leaving a cash balance at 31 December 1988 of $ Upon completion of the biennium , i.e. at 31 December 1989, the unliquidated obligations will be reflected in the balance sheet for the amount outstanding at that date. -prior years. Unliquidated obligations for years prior to 1988 total $ and are in respect of fellowships not completed, printing, and operational supplies. Other funds and prior years 1 unliquidated obligations relating to extrabudgetary funds operated on an accrual basis amounted to $ at 31 December Tax Equalization Fund To this fund, established by the Twenty-first World Health Assembly in resolution WHA21.10, is credited the revenue from staff assessment (i.e., the deduction made from the gross salary of a staff member of an amount in lieu of income tax), the credits being recorded in the name of individual Member States in proportion to their assessments for the financial period involved. In establishing the contributions to be made to the regular budget by individual Member States, the latters 1 assessments are reduced by the amount standing to their credit in the Tax Equalization Fund; however, the credits of those Member States that require staff members of WHO to pay taxes on their WHO emoluments are reduced by the estimated amounts of the tax to be reimbursed by the Organization. Executive Board Special Fund This fund was established by the Seventh World Health Assembly in resolution WHA7.24 for the purpose of meeting emergencies and unforeseen contingencies that may arise, any amounts so used to be replaced by making specific provision therefor in the next budget, unless recoverable from other sources. Special Account for Operation of Concessions at Headquarters Established by the Director-General under the authority vested in him under Financial Regulation 6.6, this account is credited with all amounts paid by concessionaires for space, equipment and other facilities made available by the Organization. Against the account are charged the cost of repairs, utilities, maintenance work and replacement of equipment Revolving Sales Fund This account is credited with the proceeds from sale of publications, international certificates of vaccination, films and other visual aids Against it are charged the costs of producing additional copies of such items for sale In 1988, in accordance with paragraph 4 (iii) of resolution WHA22.8, an amount of $ was transferred from the Revolving Sales Fund to the Special Account for Servicing Costs in order to finance, through the latter account, the cost of sales promotion and of staff engaged in sales for the biennial period A further amount will be transferred for this purpose at the end of 1989.

15 Revolving Fund for Teaching and Laboratory Equipment This fund was established by the Nineteenth World Health Assembly (in resolution WHA19.7) for financing the purchase of teaching and laboratory equipment for education and training in medicine and the allied health sciences, at the request of Members and against advance deposit in the national currency of the funds required. Terminal Payments Account This account was established by the Director-General under Regulation 6.6 to provide for financing the terminal emoluments grant, accrued annual leave, travel on repatriation, removal on indemnities. Loans repayable $ (Sw.fr ) - the Swiss Confederation (interest-free) This amount represents the outstanding balance of loans made to the Organization in connection with the financing of the construction of the headquarters building. The reimbursement of the Swiss loan was postponed to the period in accordance with resolution WHA34.10 relating to the construction of additional facilities at headquarters. $ (Sw.fr ) - the Swiss Bank Corporation (current interest rate fixed at 4.75% applicable up to 30 June 1989) This represents the temporary loan drawn upon for the construction of an underground parking garage at headquarters. Equity in capital assets (Real property) the authority vested in him by Financial of staff members, including repatriation repatriation, and other separation This amount ($ ) represents the difference between capital assets ($ ) and loans repayable ($ ). As the loans on the headquarters building and underground parking garage are repaid, the Members' equity in the Organization's capital assets will increase accordingly.

16 ASSESSED CONTRIBUTIONS AND PRIOR FINANCIAL PERIODS (EXPRESSED IN US DOLLARS) IN ACCORDANCE WITH ESTABLISHED PRACTICE ONLY CONTRIBUTIONS ACTUALLY RECEIVED ARE TAKEM UP AS INCOME IN THE ACCOUNTS ASSESSMENTS ASSESSMENTS FOR PRIOR FINANCIAL PERIODS MEMBERS, INCLUDING NET COLLECTED BALANCE BALANCE COLLECTED AND BALANCE ASSOCIATE MEMBERS ASSESSMENTS DURING 1988 OUTSTANDING OUTSTANDING ADJUSTED OUTSTANDING OUTSTANDING 31 DEC JAN 1988 DURING DEC 1988 MEMBERS ASSESSED FOR THE EFFECTIVE WORKING BUDGET AFGHANISTAN ALBANIA ALGERIA ANGOLA ANTIGUA AND ARGENTINA AUSTRALIA AUSTRIA BAHAMAS BAHRAIN BANGLADESH BARBUDA BELGIUM BENIN BHUTAN BOLIVIA BOTSWANA BRAZIL BRUNEI DARUSSALAM BULGARIA BURKINA FASO BURMA BURUNDI CAMEROON CANADA CAPE VERDE CENTRAL AFRICAN REPUBLIC CHAD CHILE CHINA COLOMBIA COMOROS CONGO COOK ISLANDS COSTA RICA COTE D'IVOIRE CUBA CYPRUS CZECHOSLOVAKIA DEMOCRATIC KAMPUCHEA DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA DEMOCRATIC YEMEN DENMARK DJIBOUTI DOMINICA DOMINICAN REPUBLIC ECUADOR EGYPT EL SALVADOR EQUATORIAL GUINEA ETHIOPIA FIJI FINLAND FRANCE GABON GAMBIA GERMAN DEMOCRATIC REPUBLIC GERMANY, FEDERAL REPUBLIC OF GHANA GREECE GRENADA GUATEMALA GUINEA GUINEA-BISSAU GUYANA HAITI HONDURAS HUNGARY ICELAND INDIA INDONESIA IRAN (ISLAMIC REPUBLIC OF) IRAQ IRELAND ISRAEL ITALY JAMAICA JAPAN <« 厶 厶 « S0 88Б Б ООО К 厶 ООО < < <* " < ( « <128 2«i 厶 « <i 厶 ^ 厶 < < <

17 MEMBERS, INCLUDING ASSOCIATE MEMBERS NET ASSESSMENTS ASSESSMENTS COLLECTED DURING 1988 BALANCE OUTSTANDING 31 DEC 1988 ASSESSMENTS I PRIOR FINANCIAL PERIODS BALANCE OUTSTANDING 1 JAN 1988 COLLECTED A ADJUSTED DURING 198 BALANCE OUTSTANDING 31 DEC 1988 OUTSTANDING JORDAN KENYA KIRIBATI KUWAIT LAO PEOPLE'S DEMOCRATIC REPUBLIC LEBANON LESOTHO LIBERIA LIBYAN ARAB JAMAHIRIYA LUXEMBOURG MADAGASCAR MALAWI MALAYSIA MALDIVES MALI MALTA MAURITANIA MAURITIUS MEXICO MONACO MONGOLIA MOROCCO MOZAMBIQUE NAMIBIA NEPAL NETHERLANDS MEW ZEALAND NICARAGUA NIGER NIGERIA NORWAY OMAN PAKISTAN PANAMA PAPUA NEW GUINEA PARAGUAY PERU PHILIPPINES POLAND PORTUGAL QATAR REPUBLIC OF KOREA ROMANIA RWANDA SAINT KITTS AND NEVIS SAINT LUCIA SAINT VINCENT AND THE GRENADINES SAMOA SAN MARINO SAO TOME AND PRINCIPE SAUDI ARABIA SENEGAL SEYCHELLES SIERRA LEONE SINGAPORE SOLOMON ISLANDS SOMALIA SPAIN SRI LANKA SUDAN SURINAME SWAZILAND SWEDEN SWITZERLAND SYRIAN ARAB REPUBLIC THAILAND TOGO TONGA TRINIDAD AND TOBAGO TUNISIA TURKEY UGANDA UNION OF SOVIET SOCIALIST REPUBLICS UNITED ARAB EMIRATES UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND UNITED REPUBLIC OF TANZANIA UNITED STATES OF AMERICA URUGUAY VANUATU VENEZUELA VIET NAM YEMEN YUGOSLAVIA 739 U 厶 Б 965 ' Í 厶 厶 <i 厶 U ^ ООО 2 厶 厶 S <0 0<; Б Í 厶 ^ ZÜ <i 厶 ^

18 MEMBERS, INCLUDING ASSOCIATE MEMBERS NET ASSESSMENTS ASSESSMENTS COLLECTED DURING 1988 BALANCE OUTSTANDING 31 DEC 1988 ASSESSMENTS F BALANCE OUTSTANDING 1 JAN 1988 PRIOR FINANCIAL COLLECTED AND ADJUSTED DURING 1988 PERIODS BALANCE OUTSTANDING 31 DEC 1988 OUTSTANDING ZAIRE ZAMBIA 一 一 一 ZIMBABWE MEMBERS ASSESSED FOR THE EFFECTIVE WORKING BUDGET MEMBERS INCLUDED IN THE UNDISTRIBUTED RESERVE BYELORUSSIAN SSR SOUTH AFRICA UKRAINIAN SSR Í К Í ^7 U MEMBERS INCLUDED IN THE UNDISTRIBUTED RESERVE NEW MEMBERS - NEW MEMBERS - ALL MEMBERS Б0 2 厶 Namibia - contribution financed from casual income (resolution WHA30.).

19 WORKING CAPITAL FUND as at 31 December 1988 (expressed in US dollars) The Working Capital Fund was established for the primary purpose of providing funds as may be required to finance the regular budget pending receipt of contributions from Members and Associate Members, the sums so advanced being subject to reimbursement to the Fund as contributions become available Additionally, in accordance with Financial Regulations 5.1 and 6.3, should the Working Capital Fund be depleted the Director-General is authorized to resort to internal borrowings. The Fund may also be used, subject to certain conditions and limitations, to meet any unforeseen or extraordinary expenses and for the provision of emergency supplies to Member States and Associate Members. The Fund is established in two parts. Part I consists of advances from Members amounting to $ , while Part II is composed of amounts transferred from Casual Income. By virtue of resolution WHA38.8 this has been maintained at $ 6 ООО 000 for the years 1988 and The established level of the Fund at 31 December 1988 was thus $ Balance at 1 January 1986 and January Income Assessments on Members received: Revision of assessments: Resolution WHA38.8: Increases Decreases ( ) Arrears of contributions collected and applied as reimbursement of regular budget income deficit for Total 一 Income Withdrawal Advance to cover part of the regular budget income deficit Balance at 31 December 1987 and at 31 December Note: The balance at 31 December 1988 is composed of the following elements: Established level of Fund Less Members' assessed advances not yet received (Byelorussian SSR, $ ; South Africa, $ 80; Ukrainian SSR, $ ) US$ Balance at 31 December

20 CASUAL INCOME ACCOUNT as at 31 December 1988 (expressed in US dollars) This account, pursuant to Article 7.1 of the Financial Regulations, is credited with miscellaneous income arising from interest on funds deposited with banks, the sale of equipment, exchange differential, etc ; the account also reflects the financing of the headquarters underground parking garage in accordance with resolution WHA At 31 December 1988 an amount of $ was due to the Organization but not yet received in respect of interest on deposits and securities held by banks; this amount will be credited to casual income and other appropriate funds when received at the time of maturity in 1989 Pursuant to Article IV of the Financial Regulations the account is also credited with the unobligated balances of appropriations remaining at the end of the financial period; such unobligated balances become cash for credit to casual income only when outstanding assessed contributions to the regular budget are paid by Members Arrears of contributions in respect of prior financial periods which will be credited to casual income once they have been received totalled $ 一 on 31 December The use of funds available in the Casual Income Account is determined by the Health Assembly. A summary of the position for the year 1988 is shown below, followed by a comparative statement for the years giving details of income and expenditure. Balance at 1 January Income Total funds available for the year Disbursements To help finance the regular programme budget (resolution ША41Л0) To reduce the adverse effects of currency fluctuations under the regular programme budget for (resolution WHA40.4) Exemption of assessment on one Associate Member (resolution WHA30.) Total cash utilized for the year Cash balance Unliquidated obligations To reduce the adverse effects of currency fluctuations under the regular programme budget for (resolution WHA40.4) Unobligated balance at 31 December a 一 Consists of active Members 1 unpaid assessments for prior years

21 COMPARATIVE STATEMENT OF CASUAL INCOME RECEIVED AND UTILIZED 1985, 1986, 1987 AND 1988 (expressed in US dollars) Cash balance available at 1 January from previous years Income received Exchange rate savings : regular budget (resolution WHA40.3) regular budget (resolution WHA40.4) regular budget income surplus Collection of arrears of contributions Assessments on new Members Interest earned Refunds and rebates Exchange differential Sale of equipment and material Savings on unliquidated obligations Revenue from Swiss postal authorities Revolving Sales Fund - Income from sale of WHO publications (net after deduction of costs of production, sales promotion and distribution) Sundry Underground parking operations: Rentals collected Less : Interest on loan for construction of parking garage Reimbursement of loan Total - Income received Total funds available for the year A ( ) (42 846) (52 819) (52 960) (43 092) (68 579) (96 733) ( ) ( ) A Utilization of casual Income available Disbursements Financing of regular budget Exchange rate facility: Charge for the regular budget (resolution WHA40.3) Charge for the regular budget (resolution WHA40.4) Exemption of assessment on one Associate Member (resolution WHA30.) Transfer to Real Estate Fund Internal borrowing To finance the regular budget obligations pending receipt of assessed contributions (Financial Regulation 5.1) Total cash utilized for the year Cash balance Unliquidated obligations Exchange rate facility: regular budget (resolution WHA40.3) regular budget (resolution WHA40.4) Unobligated balance at 31 December